David N. Deutsch & Company completes sale of Capital Contractors Inc.

September 22, 2009

NEW YORK — David N. Deutsch & Company, a New York-based investment banking firm, announced today that it has advised Capital Contractors, Inc. and its affiliates (“Capital”, “CCI” or the “Company”) on its sale to investment funds associated with Palladium Equity Partners, LLC (“Palladium”) in partnership with Dennis Kaplan, the Company’s President and Chief Operating Officer. Based in Melville, New York, Capital Contractors is one of the largest privately held providers of janitorial and facilities maintenance services in North America. David N. Deutsch & Company served as exclusive financial advisor to Capital Contractors in the transaction. Transaction terms were not disclosed.

Capital offers a comprehensive range of cleaning and maintenance services to thousands of facilities in all 50 states, plus Canada and Puerto Rico. The Company’s customers range from Fortune 500 companies (in retail, health and fitness, educational services, and hotel and hospitality, among other industries) with hundreds of locations throughout the country, to those with single locations. Founded and privately held since 1932, Capital operates through a network of 31 branch offices throughout the U.S. and Canada.

In discussing the transaction, David Deutsch, President of David N. Deutsch & Company said, “Capital Contractors is precisely the kind of niche-leading, closely-held company that our firm exists to serve. This is a significant and very positive event for Capital’s selling shareholders, management team, employees, customers and suppliers.”

Erik Scott, Principal at Palladium Equity Partners, commented, “CCI is well known by its customers for providing high quality support and responsive customer service at a competitive price for over 75 years. With its network of offices throughout the U.S. and Canada, the Company is well-positioned to manage large-scale national accounts through a single point of contact, while also serving local businesses with its local knowledge and expertise. We see significant long-term growth potential for a proven, cost-effective provider like CCI, particularly given promising industry trends in outsourcing and vendor consolidation.”

Dennis Kaplan commented, “I am extremely pleased to be working with Palladium, a firm with a strong track record as an investor and many years of experience helping companies grow. We believe we are very well-positioned to serve large national customers and local businesses, and with expanded capabilities we look forward to working with current and prospective customers to meet all of their cleaning and facilities needs.”

Mr. Scott continued, “It was a pleasure working with David N. Deutsch & Company on this transaction. David N. Deutsch & Company did an exceptional job of matching a closely-held business with a suitable financial partner and advising its shareholders on the intricacies of this type of transaction, which represented a significant milestone event for the owners.”

Capital Contractors’ future strategic initiatives include growing the company’s impressive list of national and local customers, furthering its expansion into Canada, and expanding its platform to include enhanced HVAC, plumbing, landscaping, repair and maintenance and other services.

Capital Contractors, Inc. and its affiliates is one of the largest privately held providers of janitorial and facilities maintenance services in North America. With offices throughout the U.S. and Canada, CCI maintains thousands of facilities and has been successfully serving customers for more than 75 years.

Palladium Equity Partners, LLC, along with its affiliates, targets investments in business services companies as well as in financial services, consumer/retail, food/restaurants, healthcare, and manufacturing and media businesses. Palladium has a focus on companies that are well-positioned to capitalize on the fast-growing U.S. Hispanic market. The principals of Palladium have directed investments of over $2.5 billion of equity in more than 65 portfolio companies over the last two decades.

Established in 1993, David N. Deutsch & Company is a New York-based investment banking firm providing merger, acquisition, divestiture, and financing services to leading closely-held companies and their owners. The firm is known for the scope